Scott Savage Discusses His Book, "Your Business Exit: Monetizing Your Life’s Work"



Transcript:

Tom Livergood: Welcome back to Alliance Talks. I'm Tom Livergood founder and CEO of The Family Wealth Alliance. And I'm joined today by Scott Savage. Scott is founder and CEO of SJS Investments. And they're a new member of the Alliance. We're delighted to have you Scott and happy to have you today on this episode.

Scott Savage: Well, it's a pleasure to join you Tom. I'm really excited to be a part of The Family Wealth Alliance, and we're really looking forward to learning, and contributing, and being part of The Family Wealth team.

Tom Livergood: Well, you're contributing today with this segment. And I think our listeners really neat to hear this. You recently put out an ebook called Your Business Exit: Monetizing Your Life's Work, which is really a terrific resource for clients with a unique take on business succession. And what I call a next chapter. Please tell us a little bit about the book and why you chose to write it, Scott.

Scott Savage: Well, we work with so many business owners and as a business owner myself, I started SJS 25 years ago. And as a business owner myself, I can really empathize with some of the issues and questions that our business owner clients have. And so there's that real connection that I feel to a business owner that we're advising. And so I thought, well, there are some lessons that I think I can bring on behalf of all this experience that I've had advising business owners over the years. And I thought, well, I'll get it out there in the ether. And hopefully help people avoid some of the pitfalls that are often made in this process by people who are generally selling a business one time in their life. And so you get one chance at doing it right.

Tom Livergood: I really liked that last point that you really have one chance to do it and you want to do it right. And I think that resonates more than anything that you've said. There's an interesting component that you've alluded to Scott, and of their resource mentioned in the subtitle, which is how to manage the financials and the emotions so that you can leave on your own terms. Business owners certainly would relate leaving on their own term, but the psychological journey I'd love for you to talk about. Because I wouldn't think that'd be top of mind with business owners as they prepare their deal team, as you've talked. Can you explain why you chose to address that particular aspect?

Scott Savage: Well, it's like the gold medal athlete bit. Wins the gold medal, stands on the podium, goes to bed that night and wakes up the next day, depressed and down. And I've had dozens of experiences of clients that have properly prepared to sell a business, sell a business on their terms financially and wake up the next day, feeling very, very down. And so to me, it's important that just let somebody know ahead of time, hey, look, this is how you're going to feel the day after you closed. And so then when it happens, they know, oh my gosh, this is normal. I'm in a big canoe and I'll get through that. But it's a really big component whether you're selling to family members, or to private equity, or to a strategic buyer. Irrespective when that life's journey kind of comes to an end or is monetized, it's a tough psychological leap that people need to make. And I just thought, gosh, let's give them a heads up about that.

Tom Livergood: Yeah. I think that's really smart. I know that parents can do a similar analogy about getting their kids ready to go to college, right. And it's just so exciting and the buildup and all that, and the selection, you drop them off and you leave and,

Scott Savage: And you're going to cry.

Tom Livergood : You're not happy. Right. No, I get it. Business owners really do go through a lot and you've given a lot of thought and consideration. What's the, maybe the one piece of advice that you would leave with them in preparing for that transition?

Scott Savage: Well, I think in this country, Tom, I'm sure you'll agree that the way to create wealth in our country is still through a very concentrated bet on a certain industry, oftentimes in one geography. So having all your eggs in one basket, and this person has been watching that basket for sometimes decades. But the job is to monetize that basket. The job becomes then to preserve and protect what you've spent your life creating. And it's a very different mindset. You give up a lot of control. A lot of people have a really tough time with that transition of depending on the financial markets to send them their paycheck in the future. So their financial issues, and there are emotional issues, and they're absolutely connected.

Tom Livergood: Yeah. Well, Scott, thanks for sharing. I appreciate your insights. Very grateful that you've joined me on this episode for a discussion about this. If you haven't picked it up, get SJS Investments ebook, Your Business Exit: Monetizing Your Life's Work. You can find it on your screen here. You can go to our resource and SJS's. But you've done great work as a leader at SJS Investments, Scott. And we appreciate you sharing that today. That's all we have time for. Thank you for joining us for another installment of Alliance Talks. Make it a great day.


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